Well, personally I would prefer them to make profit. I would be willing to pay a bit more since the product seems quite interesting - not actually in the current state, but what the product could be if the business actually flourishes.
Better would be something like "Disclaimer: the product can have up to 10 dead pixels which are not covered by warranty."
Better would be something like "Disclaimer: the product can have up to 10 dead pixels which are not covered by warranty."